By Paul Ploumis (ScrapMonster Author)
March 17, 2016 03:04:38 AM
SEATTLE (Scrap Monster): The latest financial report released by Outerwall Inc., which owns ecoATMs, indicates that losses from the business widened during the year 2015. The ecoATM e-scrap kiosk business ended in a loss of over $100 million during the year. Consequently, the company is planning to sell its e-scrap venture.
Last month, Engaged Capital LLC-the second largest shareholder of Outerwall Inc had urged the company to explore strategic options to turn the business profitable. The fund which owns 14.6% stake in Outerwall had suggested that it should also consider selling or shutting down its phone recycling business among various other options. Engaged Capital had alleged that flaws in governance and capital allocation policies are suspected to be the key drivers for Outerwall’s underperformance.
Subsequent to the suggestion by Engaged Capital, many other outlets including Geek Wire had suggested that Outerwall must consider selling its entire business to potential buyers. Meantime, Outerwall Inc. noted that nothing could be disclosed on the developments until it gets final nod from the Board.
Currently, there are almost 2,250 automated ecoATMs across the country that accepts electronic waste including used mobile phones, tablets and other electronic accessories. The ecoATM venture reported operating loss of $137 million in 2015.
Outerwall Inc. (formerly Coinstar, Inc.) is an American company with a network of movie and game rental kiosks as well as coin-cashing machines.